Enterprise resource planning (ERP) is a systemised collection of functions, capabilities and processes used by companies to manage and integrate the important parts of their businesses. ERP software applications are important to companies because they help them implement resource planning by integrating within a single business system all of the processes needed to run their companies.
An ERP software system can also integrate planning, purchasing, inventory, sales, marketing, finance, human resources, and more. From the early days of MRP (Material Requirements Planning) systems, ERP business systems have evolved over many years to become an integrated suite of functions and capabilities to manage the entire end-to-end business footprint of any small, medium, or large enterprises.
Modern ERP solutions have evolved to encompass a variety of new technologies, including cloud-based platforms and web-based applications that users can access remotely. Some key benefits of ERP include the free flow of data, information, and business processes between various business areas, providing a single source of information shared by all functions. This enables accurate, real-time data insights and reporting.